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Ether Demand Driven by Institutional Buying in U.S., Coinbase Premium Shows

The ETH/Coinbase premium, which tracks the price difference between ETH on Coinbase and Binance flipped positive this week.

Updated Jul 18, 2025, 1:52 p.m. Published Jul 18, 2025, 1:19 p.m. 1 min read
Institutional traders are more bullish on bitcoin than alternative cryptocurrencies. (Hans Eiskonen/Unsplash)

What to know:

  • Ether (ETH) surged above $3,600, marking its strongest rally since April, driven by increased institutional demand.
  • Ethereum spot ETFs have seen record daily inflows, with significant buying activity noted on Coinbase.
  • The ETH/Coinbase premium turned positive, indicating institutional investors are leading the current market breakout.

Ether (ETH) broke above $3,600 this week, marking its strongest rally since April, as on-chain data and ETF flows point to accelerating institutional demand, particularly from U.S.-based buyers.

The surge in allocations follows a steady wave of buying activity on Coinbase, where ETH has begun to trade at a premium — a signal typically associated with U.S. whales and institutions ramping exposure.

“A premium on Ethereum, unseen in recent times, has emerged on Coinbase, a platform primarily used by U.S. institutions and whales,” CryptoQuant independent analyst CryptoDan said in a post. “Moreover, the steady rise in buying activity, presumably from U.S. whales, is noteworthy.”

“Additionally, the recent inflow of funds into Ethereum spot ETFs has hit an all-time high on a daily basis, indicating that U.S. investors are aggressively accumulating Ethereum,” they added.

(CryptoQuant)

The ETH/Coinbase premium, which tracks the price difference between ETH on Coinbase and Binance, had trended flat for much of June but flipped positive this week.

That divergence, paired with spot ETF inflows, suggests that institutions are leading the current breakout rather than chasing.

ETH is up 21% over the past 7 days, outperforming BTC and most major cryptocurrencies.

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